Established direct lender with a 20+ year track record will add approximately $3.8 billion in assets under managementLower-middle market focus a natural fit with existing P10 strategies DALLAS, Feb. 05, 2026 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX) (“P10” or the “Company”), a leading private markets solutions provider, today announced it has entered into a definitive agreement to acquire Stellus Capital Management, LLC (“Stellus”), a U.S. direct lender specializing in senior secured loans in the lower-midd ...

Record $19.4 Billion in New Commitments Closed in the Fourth Quarter and, $55.0 Billion Closed in the 12 Months Ended December 31, 2025 NEW YORK, NY / ACCESS Newswire / February 5, 2026 / Ares Management Corporation (NYSE:ARES) announced today that Ares Credit funds (collectively "Ares") closed record U.S. direct lending commitments of approximately $19.4 billion across 119 transactions during the fourth quarter of 2025 and approximately $55.0 billion across 358 transactions in the 12 months ended December ...

Ares Capital (NasdaqGS:ARCC) Q4 2025 Earnings call February 04, 2026 12:00 PM ET Company ParticipantsBrian McKenna - Director of Equity ResearchJana Markowicz - Partner and COOJim Miller - Partner and PresidentJohn Stilmar - Partner and Co-Head of the Ares Public Markets Investor RelationsKort Schnabel - Partner, Co-Head for US Direct Lending, and CEOScott Lem - CFOConference Call ParticipantsArren Cyganovich - Managing Director and Senior Equity Research AnalystCasey Alexander - Managing Director and Senio ...

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.41 for Q4 2025, down from $0.57 in the prior quarter and $0.55 in Q4 2024. For the full year, GAAP net income per share was $1.86, compared to $2.44 in 2024 [17] - Core earnings per share for Q4 2025 remained stable at $0.50, compared to $0.50 in the prior quarter but down from $0.55 a year ago. For the full year, core earnings per share were $2.01, down from $2.33 in 2024 [17] - The company generated a 10% core return on equity (ROE) for the year, consistent with historical averages [18] Business Line Data and Key Metrics Changes - The company achieved record gross originations of $15.8 billion in 2025, with Q4 originations exceeding $5.8 billion, a 50% increase from Q4 2024 [26] - New investment commitments accelerated in the second half of 2025, driven by M&A and LBO activities, with about half of new originations supporting M&A-driven transactions [26][27] - The portfolio at fair value increased to $29.5 billion, a 3% increase from the prior quarter and a 10% increase year-over-year [27] Market Data and Key Metrics Changes - The company added over 100 new borrowers in 2025, setting a new record, and ended the year with a diversified portfolio of 603 borrowers [27] - The weighted average organic EBITDA growth rate of portfolio companies was more than three times that of GDP, indicating strong performance relative to the broader economy [10] - Non-accruals at cost remained stable at 1.8%, consistent with prior levels and below historical averages [32] Company Strategy and Development Direction - The company emphasized its long-term competitive advantages, including team experience, market relationships, and rigorous credit standards, which are expected to support future performance [5] - The focus on specialized industry verticals, such as software and healthcare, has led to differentiated deal flow and a 50% increase in non-sponsored originations [9] - The company plans to maintain its dividend despite potential declines in short-term interest rates, supported by a strong balance sheet and spillover income [14][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic volatility and capitalize on market opportunities, particularly in the software sector [56] - The company is closely monitoring market conditions and believes it is well-positioned to benefit from any dislocations in the capital markets [56] - Management highlighted the importance of maintaining a diversified capital base to support consistent lending activities [34] Other Important Information - The company reported a total portfolio at fair value of $29.5 billion, with a net asset value of $14.3 billion, or $19.94 per share, reflecting a slight decrease from the previous quarter [19] - The company has a strong liquidity position, totaling over $6 billion, including available cash [23] - The first quarter 2026 dividend is set at $0.48 per share, payable on March 31, 2026 [24] Q&A Session Summary Question: Concerns about AI's impact on software business performance - Management expressed confidence in their software portfolio, emphasizing that they invest in foundational infrastructure software resistant to technology risk, including AI [38][40] Question: Characterization of deal flow and market conditions - Management noted that most deal flow consists of add-on acquisitions for existing portfolio companies, with limited resurgence in dividend transactions [50] Question: Market dislocation and spread widening - Management explained that recent market volatility did not lead to sustained spread widening, attributing this to the quick recovery of the broadly syndicated market [72][74] Question: Share repurchase program - Management confirmed that share repurchases are always considered based on stock trading levels, but no specific plans were disclosed [76]

Core Viewpoint - New Mountain Finance Corporation will release its financial results for the quarter and year ended December 31, 2025, on February 24, 2026, after market close, followed by an earnings conference call on February 25, 2026 [1]. Group 1: Financial Results Announcement - The financial results for the quarter and year ended December 31, 2025, will be announced on February 24, 2026 [1]. - An earnings conference call and webcast will take place on February 25, 2026, at 11:30 am Eastern Time [1]. Group 2: Conference Call Participation - Participants can join the live earnings conference call using specific dial-in numbers provided for both the United States and international callers [2]. - To avoid delays, participants are encouraged to join at least fifteen minutes prior to the start of the call [2]. Group 3: Company Overview - New Mountain Finance Corporation focuses on providing direct lending solutions to U.S. upper middle market companies backed by top private equity sponsors [3]. - The company's investment objective is to generate current income and capital appreciation through senior secured loans and select junior capital positions in growing businesses within defensive industries [3]. - New Mountain Capital, the parent firm, manages approximately $60 billion in assets, leveraging deep sector knowledge and operating resources for its investment approach [3].

Investment Rating - The report indicates a strong performance in the European direct lending market, with record-breaking volumes and deal counts in 2025, suggesting a positive investment outlook for this sector [5]. Core Insights - European direct lending reached a total estimated volume of €41.4 billion across 160 transactions in 2025, surpassing the previous year's figures [5]. - M&A activity saw a decline, with acquisition-related funding dropping to €22.1 billion from €23.8 billion in 2024, indicating a slowdown in this area [5]. - Refinancings and recapitalizations were significant contributors to the market, accounting for €18.3 billion in 2025, up from €14.2 billion in 2024, marking the highest volume since tracking began [5]. - The lower mid-market segment dominated, with 56% of deals sized between €100-349 million, and 75% of all deals being under €500 million [5]. - Average spreads for direct lending tightened significantly, with over a third of buyouts priced below 500 bps in 2025, a notable change from previous years [32][40]. Summary by Sections Direct Lending Volume & Counts - The total estimated volume and deal count for direct lending in 2025 set new records, with a significant increase compared to 2024 [5][11]. - The last quarter of 2025 saw a notable uptick in deal activity, contributing to the overall annual growth [8][20]. Refinancing and Recapitalization - Refinancing and recapitalization activities surged, with recap deals representing the highest share of transactions since tracking began [14][79]. - The volume of refinancing from broadly syndicated loans to direct lending decreased significantly in Q4 2025, indicating a shift in market dynamics [5][67]. Market Characteristics - The share of non-sponsored deals remained stable, close to the five-year average, while the number of non-sponsored transactions funded by direct lenders hit a low since Q3 2024 [73][76]. - France emerged as the leading country for direct lending loans, capturing 24% of the market share, while the UK maintained a strong presence in non-sponsored transactions [88][95]. Sector Distribution - Technology, Professional & Business Services, and Healthcare sectors accounted for over half of all direct lending deals in 2025, highlighting sectoral preferences among lenders [97]. Leverage Trends - The leverage gap between broadly syndicated loans and direct lending transactions has narrowed, reflecting changing market conditions and borrower profiles [100]. Distressed Situations - An increase in debt-for-equity swaps and distressed situations was noted, indicating a growing trend in the direct lending market [108]. Fundraising Trends - Direct lending remains the largest type of private capital fundraising in Europe, despite a general decline in AUM in 2025 [116][119].

Investment Rating - The report does not explicitly state an investment rating for the private credit industry in 2025 Core Insights - Direct lending volume decreased in Q4 2025, marking it as the weakest quarter of the year with $56.6 billion across 189 deals, the lowest volume in two years and the lowest transaction count since Q3 2023 [4] - For the full year 2025, direct lending volume was estimated at $247 billion, down 11% from 2024, with 842 transactions, a 16% decrease from the previous year, yet it was the second-busiest year in at least eight years [4][12] - Buyout financing in Q4 2025 was estimated at $18.2 billion, down from $25.1 billion in Q3, with only 46 transactions, the lowest since Q3 2023 [4] - Private credit/middle-market CLO issuance reached a record of $43.1 billion for the year, despite a quarterly drop to $10.3 billion in Q4 [4] - The outlook for 2026 suggests strengthening M&A activity and improved market sentiment, with expectations for higher transaction volumes [4] - Refinancing activity was robust, with $34.1 billion of direct-lender loans refinanced in the broadly syndicated loan market, an 18% increase from 2024 [4] - Credit spreads remained steady in Q4 2025, with a median of S+475, and 48% of buyout deals fell into the 450-499 bps range, up from 18% in 2024 [4] Summary by Sections Direct Lending Volume & Counts - Q4 2025 saw a decline in direct lending volume and deal count, with the lowest figures recorded since Q3 2023 [4][8] - The annual direct lending volume for 2025 was $247 billion, down 11% from 2024, while the deal count decreased by 16% [12] Buyout Financing - Buyout financing volume reached $81.4 billion for the full year, the highest in at least eight years, despite a decline in deal count to 214 from 248 in 2024 [4] CLO Issuance - Private credit/middle-market CLO issuance set an annual record of $43.1 billion, although Q4 issuance fell to $10.3 billion [4] Market Outlook - The 2026 outlook indicates a strengthening M&A environment and increased transaction volumes, supported by stable financial markets and corporate focus on long-term growth [4] Refinancing Activity - Direct lenders refinanced $36.9 billion of syndicated loans, the highest level in four years, while $34.1 billion of direct-lender loans were refinanced in the syndicated market [4] Credit Spreads - Credit spreads in Q4 2025 held steady, with a median of S+475, and a significant portion of buyout deals fell within the 450-499 bps range [4]

Core Insights - Morgan Stanley Direct Lending Fund (MSDL) has shown significant interest among investors in recent quarters, maintaining a bullish outlook on its performance [1] Company Overview - MSDL is categorized as a Business Development Company (BDC), which focuses on providing capital to small and mid-sized businesses [1] Investment Strategy - The emphasis on dividend investing is highlighted as a key strategy for achieving financial freedom, with MSDL being a notable example in this context [1] - The author combines financial expertise with value investing principles to build a robust investment portfolio centered around dividend income [1] Sector Focus - The investment focus spans various sectors including technology, real estate, software, finance, and consumer staples, which are also reflected in the author's personal investment portfolio [1]

Group 1 - Morgan Stanley Direct Lending Fund (MSDL) has gained significant attention from analysts and investors due to recent volatility affecting its share price [1] - The share price of MSDL has experienced extreme fluctuations, prompting interest from the investment community [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on shaping financial strategies for top-tier corporates [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [1]

Financial Data and Key Metrics Changes - For the quarter ended September 30, core net investment income was $0.28 per share, with GAAP net investment income also at $0.28 per share [4][14] - As of September 30, net asset value (NAV) was $10.83 per share, down 1.2% from $10.96 per share in the previous quarter [15] - The debt to equity ratio was 1.6 times, which was reduced to 1.4 times after subsequent asset sales [15][16] Business Line Data and Key Metrics Changes - The company invested $633 million in 11 new and 105 existing portfolio companies at a weighted average yield of 10.5% during the quarter [12] - The portfolio grew to $2.8 billion, up from $2.4 billion in the prior quarter [11] - The portfolio remains well-diversified, comprising 164 companies across 50 industries, with 90% in first lien senior secured debt [16] Market Data and Key Metrics Changes - The pricing on high-quality first lien term loans in the core middle market is SOFR plus 475-525 basis points, with leverage being reasonable [8] - The median leverage ratio of the portfolio's debt securities was 4.5 times, and the median interest coverage was 2 times [8][17] - Non-accruals represented only 0.4% of the portfolio at cost and 0.2% at market value, indicating strong credit metrics [9][16] Company Strategy and Development Direction - The company is focused on enhancing earnings power through scale, diversification, and disciplined capital deployment, as evidenced by the $250 million portfolio acquisition and the formation of a new joint venture [4][5] - The goal is to grow the PSSL2 joint venture to over $1 billion in assets, similar to existing joint ventures, which should lead to net investment income exceeding current dividends [5][12] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about a steady increase in transaction activity in private middle market lending, which is expected to lead to higher loan origination volumes [6] - The company believes the current environment favors lenders with strong private equity sponsor relationships and disciplined underwriting, areas where it has a clear advantage [6][10] - Management noted that the average consumer is relatively soft, but sectors like government services, defense, and healthcare remain strong [22] Other Important Information - The company has invested $8.4 billion in 539 companies since inception, with a loss ratio on invested capital of only 11 basis points annually [11] - The weighted average yield on debt investments was 10.2%, and approximately 99% of the debt portfolio is floating rate [16] Q&A Session Summary Question: How did the portfolio acquisition come about? - The acquisition was part of a joint venture with a third party, involving assets that were already well-known to the company, which originated a couple of years ago [20] Question: Are you seeing any bifurcation in the market? - There is a general reversion to the mean in the economy, with some sectors like logistics still dealing with post-COVID issues, while government services and healthcare remain strong [21][22] Question: What is the NII contribution from the assets sold? - The $250 million portfolio acquisition is expected to add about 1-2 cents per share of NII for a full quarter, while the new joint venture will take time to ramp up [28] Question: How are new loan spreads stabilizing? - New loans are being accessed at SOFR plus 175 basis points, with average spreads in the 475-525 range, reflecting a focus on solid credit [36] Question: What is the strength of the underlying portfolio companies? - The portfolio is seeing double-digit revenue growth and mid-single-digit EBITDA growth, with a healthy overall portfolio despite some choppier credits [44][46] Question: Any consideration for buybacks given the stock price? - The board considers all options, including buybacks, especially given the current valuation [58]